RealTime IT News

Investors Cash Out Net Shares

Internet stocks were down across the board in midday trading Tuesday as investors continue focused on a slew of earnings reports continuing to roll out.

At 11:30 a.m. Eastern, internet.com's Internet Stock Index was off 24.04, or 3.36 percent, to 692.34, the Nasdaq Composite had lost 82.65 to 3,586.73 and the Dow Jones industrial average had lost 23.82 to 10,579.81.

A number of companies that are substantially off their 52-week highs continued to get hit. Ariba Inc. was off 3-1/8 to 66-7/8, Broadcom Corp. had tumbled 6-3/4 to 164-1/2, Checkpoint Software had fallen 10-7/8 to 164-3/4, Doubleclick Inc. was down 3-11/16 to 55-9/16 and eBay Inc. had lost 7-1/2 to 121.

Others in negative territory included Exodus Communications , off 3-1/4 to 90, Infospace Inc. had lost 3-9/16 to 53, Juniper Networks Inc. had plunged 12 to 177, Network Solutions Inc. was down 7 to 135-1/2 and merger partner Verisign Inc. had lost 6-15/16 to 125-1/8.

S1 Corp. had fallen 1-3/8 to 40-15/16. The company, which provides Internet-based solutions to financial companies, was hit with a class action lawsuit Tuesday. The suit accuses S1 and unnamed executives and directors of issuing "false and misleading information" on the integration of a number of acquisitions. The plaintiffs also allege S1 misrepresented its financial condition and the sustainability of growth levels and revenue prospects.

Climbers included EarthLink Network Inc. , up 1-1/8 to 18-1/2. Sprint Corp. said Tuesday it will up its stake in the ISP to just under 27 percent. Sprint is purchasing another 26 million shares valued at about $431 million.

GetThere.com Inc. had jumped 2-1/4 to 13. Donaldson Lufkin Jenrette's Jamie Kiggen reiterated his "buy" rating on the online travel firm. He set a 12-month price target of $60.

3Com Corp. leaped 4-7/16 to 48-1/8. The computer networking equipment maker announced a stock buyback valued at up to $1 billion. It also announced it will spin off its 94 percent stake in Palm Inc. to everyone holding 3Com shares July 11.

PSINet Inc. had gained 1-7/16 to 25-3/4. The Internet backbone operator reported an operating loss of $1.06 a share for the quarter ended April 30, beating estimates by 20 cents.

Cisco Systems Inc. had advanced 1/16 to 62-13/16. The networking giant reports earnings after the close. Analysts are expecting a profit of 13 cents compared to 10 cents in the quarter a year ago.

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